KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
NYSE:KREF - New York Stock Exchange, Inc. - US48251K1007 - REIT - Currency: USD
Taking everything into account, KREF scores 4 out of 10 in our fundamental rating. KREF was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of KREF is average, but there are quite some concerns on its profitability. KREF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KREF had negative earnings in the past year.
KREF had a positive operating cash flow in the past year.
KREF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KREF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.17%, KREF is in line with its industry, outperforming 40.91% of the companies in the same industry.
KREF's Return On Equity of 0.86% is on the low side compared to the rest of the industry. KREF is outperformed by 63.64% of its industry peers.
With a Return On Invested Capital value of 0.40%, KREF perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.86% | ||
| ROIC | 0.4% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KREF has a worse Profit Margin (2.04%) than 63.64% of its industry peers.
In the last couple of years the Profit Margin of KREF has declined.
KREF has a worse Operating Margin (5.83%) than 60.61% of its industry peers.
In the last couple of years the Operating Margin of KREF has declined.
KREF has a Gross Margin (30.70%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KREF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.04% | ||
| GM | 30.7% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
KREF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KREF has been reduced compared to 1 year ago.
Compared to 5 years ago, KREF has more shares outstanding
KREF has a better debt/assets ratio than last year.
2.2 Solvency
KREF has an Altman-Z score of 0.02. This is a bad value and indicates that KREF is not financially healthy and even has some risk of bankruptcy.
KREF has a better Altman-Z score (0.02) than 62.12% of its industry peers.
KREF has a debt to FCF ratio of 45.68. This is a negative value and a sign of low solvency as KREF would need 45.68 years to pay back of all of its debts.
The Debt to FCF ratio of KREF (45.68) is better than 60.61% of its industry peers.
KREF has a Debt/Equity ratio of 3.86. This is a high value indicating a heavy dependency on external financing.
KREF has a better Debt to Equity ratio (3.86) than 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 45.68 | ||
| Altman-Z | 0.02 |
ROIC/WACC0.06
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.27 indicates that KREF may have some problems paying its short term obligations.
KREF has a better Current ratio (0.27) than 60.61% of its industry peers.
A Quick Ratio of 0.27 indicates that KREF may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.27, KREF is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for KREF have decreased strongly by -254.67% in the last year.
The earnings per share for KREF have been decreasing by -34.56% on average. This is quite bad
KREF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.72%.
KREF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.21% yearly.
EPS 1Y (TTM)-254.67%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-35.9%
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-19.93%
3.2 Future
The Earnings Per Share is expected to grow by 45.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, KREF will show a decrease in Revenue. The Revenue will decrease by -4.31% on average per year.
EPS Next Y155%
EPS Next 2Y70.29%
EPS Next 3Y45.81%
EPS Next 5YN/A
Revenue Next Year-14.48%
Revenue Next 2Y-4.21%
Revenue Next 3Y-4.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KREF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.80, the valuation of KREF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KREF indicates a somewhat cheap valuation: KREF is cheaper than 60.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, KREF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KREF is valued a bit cheaper than 68.18% of the companies in the same industry.
89.39% of the companies in the same industry are more expensive than KREF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | 159.39 |
4.3 Compensation for Growth
KREF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KREF's earnings are expected to grow with 45.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.29%
EPS Next 3Y45.81%
5. Dividend
5.1 Amount
KREF has a Yearly Dividend Yield of 10.70%, which is a nice return.
KREF's Dividend Yield is comparable with the industry average which is at 11.56.
Compared to an average S&P500 Dividend Yield of 2.34, KREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.7% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
803.52% of the earnings are spent on dividend by KREF. This is not a sustainable payout ratio.
DP803.52%
EPS Next 2Y70.29%
EPS Next 3Y45.81%
9
-0.1 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.24%
Inst Owner Change0%
Ins Owners1.65%
Ins Owner Change3.84%
Market Cap610.29M
Analysts81.82
Price Target11.6 (28.89%)
Short Float %4.98%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.7% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP803.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-94.83%
Min EPS beat(2)-233.84%
Max EPS beat(2)44.18%
EPS beat(4)3
Avg EPS beat(4)-43.81%
Min EPS beat(4)-233.84%
Max EPS beat(4)44.18%
EPS beat(8)6
Avg EPS beat(8)-61.9%
EPS beat(12)8
Avg EPS beat(12)-45.11%
EPS beat(16)11
Avg EPS beat(16)-40.84%
Revenue beat(2)0
Avg Revenue beat(2)-7.2%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)7.66%
Revenue beat(8)2
Avg Revenue beat(8)-3.59%
Revenue beat(12)6
Avg Revenue beat(12)55.81%
Revenue beat(16)10
Avg Revenue beat(16)64.59%
PT rev (1m)0%
PT rev (3m)-13.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-106.76%
EPS NY rev (1m)-8.33%
EPS NY rev (3m)-38.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.8 | ||
| P/S | 1.1 | ||
| P/FCF | 5.42 | ||
| P/OCF | 5.35 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 159.39 |
EPS(TTM)-1.16
EYN/A
EPS(NY)0.92
Fwd EY10.2%
FCF(TTM)1.66
FCFY18.44%
OCF(TTM)1.68
OCFY18.68%
SpS8.15
BVpS19.32
TBVpS19.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.86% | ||
| ROCE | 0.53% | ||
| ROIC | 0.4% | ||
| ROICexc | 0.4% | ||
| ROICexgc | 0.42% | ||
| OM | 5.83% | ||
| PM (TTM) | 2.04% | ||
| GM | 30.7% | ||
| FCFM | 20.36% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-34.98%
ROICexcg growth 5Y-19.95%
ROICexc growth 3Y-35.68%
ROICexc growth 5Y-20.67%
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 45.68 | ||
| Debt/EBITDA | 152.31 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.09 | ||
| Cash Conversion | 343.38% | ||
| Profit Quality | 999.43% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.02 |
F-Score6
WACC6.78%
ROIC/WACC0.06
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-254.67%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-35.9%
EPS Next Y155%
EPS Next 2Y70.29%
EPS Next 3Y45.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-19.93%
Revenue Next Year-14.48%
Revenue Next 2Y-4.21%
Revenue Next 3Y-4.31%
Revenue Next 5YN/A
EBIT growth 1Y450.08%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-22.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.78%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-23.8%
OCF growth 3Y2.03%
OCF growth 5Y7.65%